The pattern we have seen over the four opening sales since the Christmas recess continued this week. A good rise in the market has been followed by a fall in prices and this was no different over the past fortnight. Whether the increased quantity in volume (25%) from the previous sale or the up and down movement dictated market movements, one may be hard pressed to find out. Another factor that can influence price movement is if one company that dominates a sale for a week, they may back off slightly in the next sale thus making the market cheaper. The market retreated by 10 cents to see the EMI at 1138 cents. This, coupled with two other small falls has the market losing only 22 cents as against two weekly gains totaling 78 cents - a positive lead of 56 cents for the past five sales since this years resumption. Not all indicators recorded losses, as finer than 17.5 ended the sale 5 to 10 cents dearer on the back of a very stylish Goulburn selection on Thursday. The top price for the sale was 1700 cents for a 14.7 micron lot. In a precursor to the next few weeks with a sprinkling of NZ wool in Melbourne and Goulburn wool in this sale, a day’s selling in Launceston next week followed by the final Newcastle sale in two weeks, there is a significant volume of fine wool coming onto the market in the next three weeks. Melbourne’s best price was 2290 cents for a 12.5 micron lot with 3.7 % VM. Superfine woolgrowers are counting on Italy to bolster prices over the next few sales before the large selection of these types fades to smaller quantities. All the indicators fell from 18 to 23 micron but the losses were on the small side - 5 to 10 cents - of which most occurred early in the sale, as the market firmed on Thursday with the superior selection on offer, although the Melbourne and Fremantle indicators did falter on Thursday, both giving up 6 cents.

Skirtings had a quieter sale than the previous few weeks with the better length and style, low VM lots up to 10 to 15 cent’s higher with heavier VM types unchanged or the odd lot irregular. Cardings continued to climb the price ladder as all three centres posted good rises, especially in Melbourne, rising 26 cents. The three MCIs are all now over 700 cents - both Eastern Seaboard indicators on 749 and Fremantle at 709. All styles and types gained 10 to 15 cents. Crossbreds looked a little easier as their indicators were quoted up to 5 cents cheaper.

The market keeps bubbling along despite the three little corrections we’ve encountered recently. At 103 cents, the A$ is at its lowest point for a few weeks. The RBA’s reluctance to lower interest rates this week is probably the reason for the fall in the exchange rate, but with consumer spending in December lower than expected, pressure will be on the board to drop the rate by .25% in 4 weeks at the March meeting. Hopefully the lower A$ will help the market to keep progressing forward. All is in readiness for our inaugural Wool Store open day and Last Chance Ram Sale tomorrow, commencing at 10 am. If you are thinking of turning up please do so! There will be plenty of rams to inspect and guest speakers to listen to and have a look at just what happens to your bales after they drive out the front gate.